Gift Aid and tax efficient giving

In 2013, the British Red Cross reclaimed over £14 million in Gift Aid tax. Please help us to make this figure even bigger.

If every charity supporter were to give their donations tax-effectively, charities could claim an estimated additional £900 million from the HM Revenue & Customs each year.

Providing you are a UK taxpayer, you could boost your charitable donations just by giving in a tax-efficient way. We appreciate that tax has its complexities and can be difficult to understand. If you are unsure about anything, please don't hesitate to call our Supporter Care Line on 0300 456 11 55 or email giftaidadministration@redcross.org.uk.

Gift Aid is one of the simplest and most effective ways of giving to charity. It is a scheme introduced by HM Revenue & Customs, which allows us to reclaim the basic rate tax you pay as a UK taxpayer.

It means that for every £1 you donate we can claim an extra 25p of tax, at no extra cost to you. All that is required from you is a one-off declaration, which you can give by simply ticking a box on a form, online or by agreeing over the phone, and we'll do the rest.

You can make an oral declaration by calling 0300 456 11 55; or by downloading a form (pdf) and sending it to: British Red Cross, Gift Aid, 44 Moorfields, London EC2Y 9AL.

Please remember to let us know of any changes to your tax status, including changes to your name and address. You can contact us at any time by emailing giftaidadministration@redcross.org.uk or by calling 0300 456 11 55.

Gift Aid can apply to donations of any amount made by an individual, large or small - it all adds up! You can Gift Aid your cash, cheque, postal order, direct debit, standing order and credit or debit card donations.

To qualify for Gift Aid, you need to be a UK taxpayer and to have paid sufficient income or capital gains tax to cover the amount of tax all the charities you give to will reclaim on your Gift Aid donations in the tax period in which they are received.

Tax is claimed at the basic rate of 20% (which is 25% on the net value of your donation). This means that under Gift Aid for every £1 you give, the British Red Cross can reclaim at least an additional 25p from HM Revenue & Customs.

Before agreeing to Gift Aid, you need to be sure that you have paid enough tax in each tax year (going back four years) to cover the Gift Aid that will be claimed against your donations in that period, and also let us know if your tax status changes in the future, otherwise you could be liable for any shortfall.

If you are unsure whether you are eligible for donating by Gift Aid, or simply want more information, please contact the HM Revenue & Customs directly or visit their website http://www.hmrc.gov.uk/

No, you only need to make a declaration once. We will keep this declaration as your enduring permission to claim gift aid tax relief on all donations you have made in the previous four years, the current year and any donations you might make to us in the future.

If you have not paid enough tax to cover in the past, or your tax status changes in the future, then please do let us know, otherwise we will keep on claiming and this could result in us receiving tax relief we are not entitled to, which could also have implications for you. You can contact us at any time by emailing giftaidadministration@redcross.org.uk or by calling 0300 456 11 55.

If you are a higher rate taxpayer we are still only able to claim the basic rate of tax on your donation. However, you are able to reclaim the difference between the amount we reclaim and the 40% you pay yourself through your annual tax return.

Income from state pensions alone is unlikely to qualify as you would need to earn above the personal allowance threshold to pay income tax. If this is your only source of income, we would always advise that you check with your tax office before completing a declaration.

No. We reclaim the tax directly from HM Revenue & Customs, you just need to tick the box on the form to confirm you are a UK taxpayer. However, you may wish to keep a record of donations you make to charity in each tax year, to ensure that you continue to pay enough tax to cover the payments you make under Gift Aid.

We only have four years in which to claim the tax relief on your donations, so if donations you have made go back further than 4 years, we will only apply the tax relief to donations within the allowed period as set out by HMRC.

No. You only need declare gifts made in the current tax year, as although the charity can claim back the tax on donations received up to four years ago, you can normally only benefit from tax relief on donations made in the current period. Please speak to your tax office if in any doubt as to your entitlement.

If you have any further questions about Gift Aid – or if your circumstances change and you need to cancel the agreement – please contact our dedicated Supporter Care Team by emailing giftaidadministration@redcross.org.uk or by calling 0300 456 11 55.